Engage:BDR : March 2022 Quarterly Activities Report & Appendix 4C

29 April 2022

ASX ANNOUNCEMENT Quarterly Activities Report

Q1 2022 Highlights

•  New CTV product revenue has peaked up to 30% of total daily revenue in April 2022

•  New partnership with industry leader DoubleVerify reduced ad fraud scanning costs by nearly 50% in Q2 to date, and eliminated inventory quality issues seen with previous partner, further increasing revenue

•  New partnership with AdLighting reduced advertiser campaign quality scanning costs by nearly 50% in Q2 to date, and has improved false positives to increase revenue

•  The Company's AdCel unit to white label its DSP (buyer platform), as an enterprise solution, creating incremental revenue opportunities

•  EN1's CTV (connected TV) app partnership with comedian Jamie Kennedy, HAHAJK! is now available to download on Roku, FireTV and AppleTV, Android TV, and Samsung TV devices

•  EN1 on-boarded 13 new customers in Q1 and 3 in Q2, to date

•  Engineering costs improved 26% to $307K in Q1

•  Staff costs improved 13% to $587K in Q1

•  Administrative and corporate costs improved 81% to $120K in Q1

•  Legal & Settlements improved 85% to $29K in Q1

•  Net Cash Used in Operating Activities improved 64% to $592K, from $1.66M in Q1

•  The Company is in the final stages of completing a successful capital raising

•  Distribution of revenue significantly improved to less than 15% of total for any single customer, from 85% in Q2

•  Significant reduction of largest cost unit in Q2, U.S. engineering headcount reduction by 50%

engage:BDR Limited ('Company', 'Engage' or 'EN1') trading update and commentary regarding Q1 2022 performance and activities.

Net cash used in operating activities was $592K; cash balances at the end of the March 2022 quarter were $182K. One-time, extraordinary legal expenses in Q1 2022 totalled $29K, which were comprised of trade creditor settlement (existing balance sheet liabilities) and attorney's fees.

Receipts from customers totalled $878K. Staff costs improved 13% to $587K. Administrative and corporate costs improved 81% to $120K, over the previous quarter. Ending cash balances were $182K.

During the quarter there were payments of $239,767 associated with executive and non-executive fees paid to Directors for the March 2022 quarter. This is outlined in section 6.1 of the Appendix 4C.

Subsequent event

The Company is in the final stages of completing a $1million convertible note raising as announced to the ASX subsequent to quarter end.

Revenue Distribution

In August of 2021, the Company had negative revenue impact from the pausing of its largest customer, due to uneven revenue distribution. Since August 2021, Management has been onboarding new customers in several content categories to diversify the revenue mix and reduce significant dependencies on any single client. Today, no client is contributing more than 15% maximum of any day's total revenue. Management targets to break this down to half of this figure by the end of 2022.

Reduction of U.S. Engineering Staff

By Q2, U.S. engineering costs have reduced by 50% due to reduction of staff. Management shifted focus to CTV, moving out resources focused on legacy products, mobile app and web advertising, consistent with the Company's new sole focus.

CTV

In January 2022, Management shifted the focus of the Company to primarily transact in CTV (connected television advertising). By early Q2 2022, the Company measured CTV revenue peak to a high of 30% of total daily revenue. This revenue is all new supply andbuyers, onboarded in 2022. Additionally, the Company recently rebranded as 'ColorTV' consistent to its new primary focus, in connected television advertising.

New Partnerships

In Q1 2022, Management boarded new partnerships in inventory and campaign quality scanning. A new partnership with global ad inventory quality leader, DoubleVerify, enabled significant reduction of ad fraud (not flagged by previous partner) and a new campaign quality scanning partner, AdLighting. Both partnerships are saving the Company nearly 50% across all scanning costs and increasing revenue because of less false positive flags.

AdCel Enterprise White Label

AdCel is a mobile app advertising platform which EN1 acquired in 2018. AdCel's primary focus was mobile app advertising and monetisation for app publishers. Today, AdCel owns a media buying platform (DSP - demand side platform), which it intends to license and white label to enterprise clients. Management is working on a pilot of this use case with an enterprise client currently. Additionally, AdCel is focused on monetisation for CTV app publishers and has developed a vast array of technology and solutions is CTV.

HAHJK! Connected TV App

EN1's CTV comedy app with comedian Jamie Kennedy is now live and available for download on the app stores below. Management targets 100 new U.S. comedians' exclusive content to be on-boarded onto the platform every quarter. Once 100 comedians have been on-boarded, the Company will market the app on mainstream media, app stores and comedy websites and apps to drive user acquisition, which is expected to generate video views which are monetised by EN1 CTV advertising. The App is available for download now on Roku, FireTV & AppleTV, Android TV and Samsung TV.

New Customers

Q1 2022:

Sparc media (buyer)

Team 8 (buyer)

Gotham Ads (buyer)

Mommy Poppins (supply)

Mintegral (supply)

Ximad (supply)

Consumable Media (supply)

Moneytag (supply)

Sayollo (supply)

Digicel (supply)

Venatus (supply)

The First (supply)

Edge226 (supply)

Q2 2022:

Mobius (supply)

SoundHound (supply)

IronSource (supply)

NASDAQ SEC 20F Filing

On 6 January 2021, EN1 filed a form 20F with the U.S. Securities Trade Commission to cross-list EN1 on the NASDAQ. Management is excited to potentially be listed with dozens of EN1's U.S. AdTech peers with trading multiples averaging at 20 times trailing 12 months' revenue.

The SEC responded to the submission in April and June 2021 with final commentary, which required three years' audited financials by a PCAOB certified audit firm. Since EN1 works with Australian auditors, the financials needed to be re-audited. Management signed a new U.S. audit firm; the audit is currently underway and expected to finish at the end of Q2 2022. Once the audits have been signed off, EN1 will resubmit the 20F filing to the SEC and NASDAQ for approval.

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For further investor enquires please contact Viriathus Capital on 1300 509 924 or please [e-mail].

On behalf of the Board

Ted Dhanik

Co-Founder and Executive Chairman